Home Resales Surge: Proof Economy is Picking Up
WASHINGTON — Home resales surged to the highest level in nearly three years, reflecting an extraordinary level of federal support that has pulled the housing market back from the worst downturn since the Great Depression.
The National Association of Realtors says sales rose 7.4 percent to a seasonally adjusted annual rate of 6.54 million in November, from a downwardly revised pace of 6.09 million in October.
Sales were 44 percent above last year’s levels, a record jump…
I keep telling you the economy is improving….this news is one great example of why.
As the astronaut said when landing on the moon, “One step for mankind…”, this is one of those steps being taken that proves that people are finally starting to ‘relax‘ and ‘spend‘ their money. Which is one step that needs to happen for the economy to start creating jobs.
It also proves that, yes, sometimes government intervention can help.
That $8,000 first time home buyer credit and the $6,000 repeat home buyer tax credit the government offers now is enticing folks to go and buy their own home or a new one. In case you haven’t heard, here’s a bit about the credits.
The Worker, Homeownership, and Business Assistance Act of 2009 has extended the tax credit of up to $8,000 for qualified first-time home buyers purchasing a principal residence. The tax credit now applies to sales occurring on or after January 1, 2009 and on or before April 30, 2010. However, in cases where a binding sales contract is signed by April 30, 2010, a home purchase completed by June 30, 2010 will qualify.
The Worker, Homeownership, and Business Assistance Act of 2009 has established a tax credit of up to $6,500 for qualified move-up/repeat home buyers (existing home owners) purchasing a principal residence after November 6, 2009 and on or before April 30, 2010 (or purchased by June 30, 2010 with a binding sales contract signed by April 30, 2010).
AUTHOR BIO
Routine ‘Letter to Editor’ writer. Posts regularly on Talking Points Memo (TPM) and Dkos. Owner of the Coonsey’s World and the WWII Women of Valor websites. Programmer/analyst for 30 years in educational environment.
by Mark Noonan | December 22nd, 2009 08:12 PM
Actually, all it did was advance the purchase date – because people were concerned that the credit would expire November 30th, they went in to contract no later than October 30th. Wait for the revisions to come out – and there you’ll see the number which failed to close (a lot of that happening as houses don’t appraise for anywhere near the sale price). You’ll also see a titanic drop off in December sales because with the government giveaway extended for months (and, in practical terms, probably indefinitely), the great urge to by NOW is gone.
The worst is yet to come – especially as the government has been, with this credit and other items, recreating in even worse terms the housing bubble.